(Sharecast News) - Cryptocurrency prices surged into Monday morning, after US president Donald Trump announced that Bitcoin, Ethereum, XRP, Solana,and Cardano would be included in a proposed US strategic crypto reserve.
Trump revealed the names in a series of Truth Social posts, stating that his January executive order on digital assets had directed the formation of the reserve.

The announcement triggered a market rally, with Bitcoin rising over 11% to $94,164, Ethereum gaining 13% to $2,516, and XRP surging 33%.

Solana and Cardano saw even sharper gains, jumping 25% and 60%, respectively, as the total cryptocurrency market reportedly added over $300bn in value within hours.

The specifics of the reserve remained unclear, including how it would be funded or whether congressional approval would be required.

Some analysts were speculating that the US Treasury's 'Exchange Stabilization Fund' could be used, while others argued legislation could be necessary.

"There's been a sharp recovery in Bitcoin and other digital currencies as Trump gave more details about a strategic reserve fund crypto bulls had been holding out for," said Hargreaves Lansdown head of money and markets, Susannah Streeter.

"It's unclear if the US government intends to go on a buying spree in the crypto market, or whether it will simply use the crypto seized from criminals to bulk it out.

"It's also not known how the US government intends the fund to be managed."

Streeter noted that, despite the lack of details, the pledge had reinvigorated the crypto market, with Bitcoin surging back above $94,000 before falling back again.

"Volatility is set to remain the name of the game until more is known about how the fund will operate, and crypto is also set to stay influenced by the broader investor outlook."

Trump had previously floated the idea of a Bitcoin stockpile, but his posts marked the first time he had publicly included other cryptocurrencies.

His administration had already taken swift steps to ease regulatory pressure on the industry, reversing enforcement actions initiated under former president Joe Biden.

The Securities and Exchange Commission recently dropped its lawsuit against Coinbase and halted several investigations into major crypto firms.

Trump is set to host the White House Crypto Summit on Friday, where further details could emerge.

Despite the rally, cryptocurrency prices remained volatile, having recently erased much of the gains made after Trump's election victory in November.

Reporting by Josh White for Sharecast.com.

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